Investment securities are classified based upon management's intent.This may present difficulties to readers of financial statements because

A) management's judgment of intent and ability may lack comparability
B) management's judgment may lack relevance
C) gain trading may result in not producing sufficient gains
D) gain trading may result in not producing sufficient reliability

Management's Intent

The plans and objectives that company management has regarding future operations, investments, or actions, which can affect financial reporting and decision-making.

Financial Statements

Documents summarizing a corporation's financial status, encompassing the balance sheet, income statement, and statement of cash flows.

Comparability

The ability to use accounting information to compare the financial performances of different entities.